World economy talk

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Commodities are getting obliterated

Happy weekend

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for those hoping US stocks to rally

just hope liquidity comes back

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I've been saying the global economy is slowing down (except the US)

So the Fed keeps raising interest rates believing the US economy is strong enough to absorb higher rates

The Fed recently acknowledged that growth is slowing abroad

But as long as the US economy is doing fine, the Fed will keep raising rates UNTIL SOMETHING BREAKS

i said the US isn't immune... everything's interconnected

Something has broken in the US

i believe there will still be a rate hike next month

but going into 2019 the Fed will be more cautious

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for those hoping US stocks to rally

just hope liquidity comes back

...and we're gonna find out tonight

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so much for that "global synchronized growth" everybody was talking about at the beginning of the year

[Monseratto]

DOW closes 617 pts up...

Fed's Powell, in apparent dovish shift, says rates near neutral | Reuters

Sent from my POCOPHONE F1 using Tapatalk

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neutral rate means an interest rate where it's not high enough to choke the economy but not too low to fuel inflation

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Trump isn't happy about Fed rate hikes

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The current fed funds rate is 2.25%

will be 2.5% in December

i think they'll stop at 3.0% in 2019

[StockEngine]

Powell is proving Trump is correct...


Did Fed’s Powell ‘light the fuse’ for a year-end stock-market rally? - MarketWatch

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Trump hated the rate hikes coz he wanted US stocks to hit all time highs everyday coz it will make him look good

the rate hikes have been making investors reprice asset prices (meaning lower)

it's not about Trump being right

it's about Trump's vanity

Trump wants soaring US stocks during his term so he can boast about it

[uls]

The Fed needed to raise rates coz:

1. to prevent asset bubbles

2. to have enough ammo to fight the next recession

In a recession, central banks cut interest rates to lower borrowing cost to support their economies

if the Fed didn't get rates up from zero, when the next recession comes there won't be anything to cut

well they can go negative

meaning Fed funds rate like -0.1%

so that means your dollar savings account will have negative interest rates too